No big surprise that part of my investment strategy is in Real Estate. I invest in Real Estate mainly through rental properties with Sis. Currently we have three properties in Calgary and one property in Edmonton. We have two criteria when we evaluate a property for purchase:
- Is this property priced right or under/over priced?
- What is the price we can likely negotiate?
- How long do we expect to keep this house for? What kind of appreciation can we expect when we sell?
- Are there any improvement costs we will need to invest immediately to bring this property up to par for renting?
- Are there any improvement costs we will need to invest over time to up keep or prepare the property for selling?
- Will this property be cash flow positive? i.e. we want the income to cover expenses so we don't have to inject money into the rental monthly.